Arctic Power Case Study Essay -- GCSE Business Marketing Coursework

gelid part Case StudyCURRENT SITUATIONIt is the summer of 1987. Arctic cause laundry detergent has contracted with the consulting firm of metalworker and Jones, LTD to assist Arctic fountain in determining their strategic direction and their crossway positioning. priming coat AND HISTORYArctic Power, a laundry detergent specially develop to clean in wintry water, is part of Colgate-Palmolive Canada family of products. Colgate-Palmolive Canada is a wholly own subsidiary of the multinational corporation Colgate Palmolive. In 1986 Colgate-Palmolive had worldwide sales of $4.9 trillion with profits of $178 million, with Colgate-Palmolive Canada having sales of $250 million. Colgate-Palmolive Canada (CPC) has a wide variety of household and individualised care products. Among the most popular CPC brands are ABC, Arctic Power, and Fab laundry detergents, Palmolive dish soap, Ajax and Irish Spring body soaps, Ultra Brite and Colgate toothpaste, and Baggies storage bags.Colgate-Pa lmolive Canada uses a product management system in which product managers are delegate specific responsibility for a specific brand such as Arctic Power. Their overall goals are to growth sales and profitability of their brands. The discombobulate manager is responsible for all the marketing functions, including planning, advertising, selling, packaging, and market research. An assistant product manager is assigned to work with the product manager.Prior to the late 1970s Colgate-Palmolive Canada supported their brands on a national basis, then changed strategy as CPC realized they were spreading their resources too thin. During the late 1970s through the former(a) 1980s, CPC shifted to a regional strategy. While Arctic Power was still distributed nationally, by the end of 1981, its share of the Canadian national market was 4% (consisting of an 11% share in Quebec, 5% in the Maritimes, and 2% elsewhere in Canada). As a result, Arctic Power was heavily marketed in Quebec and the Ma ritimes, with promotion support being withdrawn from the rest of Canada. This regional approach was lucky as Arctic Powers share of the overall Canadian market increased to 6.4% in 1985, capturing 18% of Quebec, 6% of the Maritime markets spell dropping to less than 2% elsewhere in Canada.1986-87 THE WESTERN ladderWith the success Arctic Power had in their regional strategy, Arctic Power launched a campai... ...tegies.BudgetDespite facing cutthroat competition that has seen the constitute of goods sold turn 15% during the past three years and prices rise only 5%, Arctic Power should be able to sojourn to have an 18% contribution margin for its sales dollars. Our primary reckon strategy would be to reduce costs and promotion expenses, while change magnitude the use of cheaper television and radio advertising. This would allow Arctic Power to increase brand awareness as well as promote the benefits of cold water washing. Arctic Power will also look to overbold cost saving te chnologies and other measures to assure profitability over the longsighted run. 14 YEARS LATER THE CONCLUSIONThe year is 2001. Through the efforts of Smith and Jones, LTDs marketing strategy, Arctic Power is the leading cold water laundry detergent in Canada and has expanded internationally. The 1987 Arctic Power weightlift will be widely studied by MBA students from Palm Desert, calcium to Palm Beach, Florida as one of the great marketing success stories. recreate and Dimick, LTD, will later go on to help some nerdy shoot down Gates kid market this unique idea of his called Windows while assisting Al Gore in his new invention, the Internet.